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Joint Legislative Commission on Land and Water Conservation, report to the 2007 General Assembly of North Carolina

28
NHTF and the PARTF. The tax does not apply to all conveyances of interest
in land, however. Specifically excluded from the tax are transfers of an
interest in real property by operation of law; by lease for a term of years; by
or pursuant to the terms of a will; by intestacy; by gift; if no consideration in
property or money is due or paid by the transferee to the transferor; by
merger, conversion, or consolidation; or by an interest securing indebtedness
( such as a mortgage).
The Commission recommends that the General Assembly consider
amending the excise tax on conveyances in two ways. First, the Commission
recommends that the General Assembly consider increasing the rate of tax.
The Commission notes that a tax rate of 0.1% ($ 1 per $ 1,000 of value
transferred) on the current base raises an estimated $ 60 million ( based on
collections for the most recent fiscal year). Second, the Commission
recommends that the General Assembly consider expanding the tax base so
that it includes transfers of an interest in real property by an instrument
securing indebtedness. This could be structured so that it applies to all
instruments securing indebtedness or solely to instruments securing
indebtedness that are not accompanied by the transfer of an ownership
interest in the property ( refinancings).
 Statewide Building Permit Fee. The Commission finds that a more narrowly
focused means of imposing the costs of land and water conservation and
cultural and historic preservation on those responsible for development
would be provided by imposing a statewide building permit fee. The
Commission notes that not all transfers of property from one person to
another would result in further development, but that further development

28
NHTF and the PARTF. The tax does not apply to all conveyances of interest
in land, however. Specifically excluded from the tax are transfers of an
interest in real property by operation of law; by lease for a term of years; by
or pursuant to the terms of a will; by intestacy; by gift; if no consideration in
property or money is due or paid by the transferee to the transferor; by
merger, conversion, or consolidation; or by an interest securing indebtedness
( such as a mortgage).
The Commission recommends that the General Assembly consider
amending the excise tax on conveyances in two ways. First, the Commission
recommends that the General Assembly consider increasing the rate of tax.
The Commission notes that a tax rate of 0.1% ($ 1 per $ 1,000 of value
transferred) on the current base raises an estimated $ 60 million ( based on
collections for the most recent fiscal year). Second, the Commission
recommends that the General Assembly consider expanding the tax base so
that it includes transfers of an interest in real property by an instrument
securing indebtedness. This could be structured so that it applies to all
instruments securing indebtedness or solely to instruments securing
indebtedness that are not accompanied by the transfer of an ownership
interest in the property ( refinancings).
 Statewide Building Permit Fee. The Commission finds that a more narrowly
focused means of imposing the costs of land and water conservation and
cultural and historic preservation on those responsible for development
would be provided by imposing a statewide building permit fee. The
Commission notes that not all transfers of property from one person to
another would result in further development, but that further development